Page 2 - Indian Banking System

Canara Bank looks to grow business to Rs 30 trillion in five years

As of March 2020, that is before amalgamation - Canara Bank business was over Rs 10 trillion

Gross NPA ratio falls to 7-yr low of 5%, banking system remains sound: RBI

The RBI on Thursday said banks' gross NPA ratio has fallen to a sever-year low of 5 per cent and the banking system remains sound and well-capitalised. In the 26th issue of the Financial Stability Report (FSR), the RBI also said the global economy is facing formidable headwinds with recessionary risks looming large. The interplay of multiple shocks has resulted in tightened financial conditions and heightened volatility in financial markets, it pointed out. "The Indian economy is confronting strong global headwinds. Yet, sound macroeconomic fundamentals and healthy financial and non-financial sector balance sheets are providing strength and resilience and engendering financial system stability," the report said. In the foreword to the report, RBI Governor Shaktikanta Das said the central bank recognises the destabilising potential of global risks, even as it draw strength from the robust macroeconomic fundamentals of the Indian economy. "The Reserve Bank and the other financial ..

All entities providing banking service subject to same rules: RBI Dy Guv

Non-bank entities cannot be allowed to undermine the banking system, he says at Business Standard BFSI Insight Summit

Only about 13% recovery in written-offs loans during last five years: Govt

Only about 13% of the loans written off by the scheduled commercial banks during the last five financial years have been recovered

Core activities of a bank should not be outsourced, says RBI's AK Choudhary

"While outsourcing it is very important that adequate safeguards are established to seal the situation as well as the financial stability of the banking system," Choudhary added

Canara Bank wins 'Banker's Bank of the Year Award 2022' for India

The winners are judged on their ability to deliver returns, strategy, innovation, technology and product & services in their respective geographies in the last 12 months

Banks' overnight SDF balances eligible for LCR computation: RBI

Circular embraces all commercial banks, leaves out local area banks, RRBs and payments banks

Will the dream run continue for banks?

As the war for deposits escalates, the cost of money will rise and banks' NIM will be under pressure. Also, a few banks may invite trouble by aggressively growing their retail books without necessary

Punjab & Sind Bank eyes Rs 1,100 crore profit amid bad loans resolution

State-owned Punjab & Sind Bank expects to clock a net profit of around Rs 1,100 crore in the current financial year on the back of resolution of bad loans. The bank has given a NPA recovery guidance of Rs 2,000 crore for the ongoing fiscal, Punjab & Sind Bank Managing Director Swarup Kumar Saha told PTI in an interaction. Out of this, Rs 700 crore has already been realised, he said, adding some big resolutions like Sintex Industries and Meenakshi Energy are going to happen in the coming quarter. Besides, he said, resolution of some IL&FS group accounts is expected during the current fiscal. Helped by strong recoveries, he said, "we are looking at profitability of Rs 1,100-1,200 crore in FY'23." During the first half of the fiscal, the bank earned a profit of Rs 483 crore as against Rs 392 crore in the same period a year ago. The bank had gone through rough patches but it was able to make a historic turnaround and recorded an annual profit of Rs 1,039 crore in FY22 -- the ..

Rate hikes will help Indian banks post healthy profits in FY23: S&P

The rising interest rates will enable Indian banks to continue posting good profits during the remaining part of FY23, according to S&P Global Market Intelligence.

We're moving away from volatile corporate bulk deposits: RBL Bank MD & CEO

In a Q&A, R Subramaniakumar dwells on the lender's strategy to fuel growth in credit cards and microfinance, and plans to mop up deposits in an increasingly difficult market

Bombay HC: Prima facie removal of Kochhar as ICICI Bank CEO valid

In the order the Judge said that the bank was justified in revoking acceptance of early retirement of Kochhar as they had accepted it without having complete knowledge of the facts

Indian Bank Q2 net profit up 12% to Rs 1,225 crore in July-Sept quarter

Public sector major Indian Bank has posted a 12 per cent rise in net profit during the second quarter of the financial year to Rs 1,225 crore,

Reserve Bank starts pilot digital currency program for select banks

Banks traded Rs 275 crore ($33.3 million) of bonds on the first day using the new form of currency, data showed

PNB Q2 net profit falls 63% to Rs 411 crore on higher provisions

State-owned Punjab National Bank (PNB) on Tuesday reported a 63 per cent decline in standalone net profit to Rs 411 crore for the September quarter on account of higher provisioning for bad loans. The bank had posted a net profit of Rs 1,105 crore in the year-ago period. Total income in the second quarter of the current fiscal increased to Rs 23,001.26 crore as against Rs 21,262.32 in the July-September period a year ago, PNB said in a regulatory filing. The lender's interest income also rose to Rs 20,154 crore from Rs 17,980 crore in the same quarter a year ago. The gross Non Performing Assets (NPAs) declined to 10.48 per cent of the gross advances from 13.36 per cent earlier. In absolute terms, the gross NPAs or bad loans stood at Rs 87,034.79 crore at the end of the second quarter of FY23, compared to Rs 1,00,290.85 crore a year earlier. The net NPA too declined to 3.80 per cent as against 5.49 per cent. However, provisions for bad loans increased to Rs 3,555.98 crore in the

Pilot for digital rupee for wholesale segment to commence on November 1

Use case to be settlement of secondary market transactions in g-secs; RBI says digital rupee is expected to make inter-bank market more efficient, as settlement will reduce transaction costs

Centre unlikely to infuse any capital into the PSBs in FY23: Report

Between FY16 and FY21, the government infused Rs 3.3 trillion into PSBs helping the banks in improving their balance sheets and the capital-to-risk-weighted assets ratio (CRAR)

Digital Banking Units to further augment digital infra, says RBI governor

The units will start will disbursing small ticket retail, MSME loans

PM Modi dedicates 75 Digital Banking Units to nation; check full list

The economic progress of a country is directly linked to the strength of its banking system, he said after dedicating 75 DBUs to the nation

NBFC Sundaram Finance Ltd revises interest rates on term deposits

Non-banking finance company Sundaram Finance Ltd has revised the interest rates on term deposits for tenures of one to three years with immediate effect, the company said on Sunday. Accordingly, the interest rates for deposits of up to 12 months has been increased to 6.65 per cent, for 24 months it has been hiked to 7 per cent, the company said in a statement. For tenures of up to 36 months, the interest rates have been increased to 7.30 per cent. Senior citizens would get an additional interest of 0.35 per cent for one year at 7 per cent, 7.35 per cent for tenures up to two years and 7.65 per cent for tenures up to three years. The company said its deposit balance stood at Rs 4,219 crore.